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Candelo is a town in south-eastern New South Wales, Australia. It is in the Bega Valley Shire local government area, 448 kilometres (278 mi) south of the state capital, Sydney and 38 kilometres (24 mi) north-west of the popular coastal holiday destination of Eden. In 2011, Candelo had a population of 732 people.The area around Candelo was first settled by Europeans in the 1830s and the village was developed in the 1860s at a crossroads following the passage of the New South Wales Land Act of 1861 allowed closer settlement.Candelo hosts notable community events such as the Candelo Village Festival, a biennial music and arts festival. The inaugural festival was held in 2008. The Candelo Show, held every January is an annual agricultural and horticultural exhibition event that has been running since 1883. The Candelo Markets are held on the first Sunday of the month and have been running since 1982. They exist primarily to fund community projects in the Candelo area.